Corsair (CRSR, Financial) announced its first-quarter revenue of $369.8 million, surpassing the market's expectation of $366.2 million. The company's CEO highlighted their achievements in hitting revenue and earnings targets, driven by growth in both the Gamer and Creator Peripherals and the Gaming Components and Systems segments.
A significant achievement this quarter was the initial integration of Fanatec into Corsair's infrastructure, enhancing product availability and customer service. Looking ahead, Corsair plans to introduce Fanatec products to key retailers in the second quarter, which is anticipated to boost revenue further.
The company expects continued growth in the self-built PC market, facilitated by improved GPU availability. They have strategically built up domestic inventories and anticipate no major tariff impacts on crucial gaming PC components. Despite potential economic slowdowns affecting consumer spending, Corsair is confident in the resilience of its high-performance gaming products.
Growth remains strong in Asia, particularly in Japan and South Korea. The integration of AI technology across various business aspects, including customer support and product enhancements, is also seen as a future growth driver. Corsair remains optimistic about its potential to leverage AI to advance game creation and user experience.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Corsair Gaming Inc (CRSR, Financial) is $12.00 with a high estimate of $13.00 and a low estimate of $11.00. The average target implies an upside of 74.17% from the current price of $6.89. More detailed estimate data can be found on the Corsair Gaming Inc (CRSR) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Corsair Gaming Inc's (CRSR, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Corsair Gaming Inc (CRSR, Financial) in one year is $13.74, suggesting a upside of 99.42% from the current price of $6.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Corsair Gaming Inc (CRSR) Summary page.
CRSR Key Business Developments
Release Date: February 12, 2025
- Q4 2024 Revenue: $413.6 million compared to $417.3 million in Q4 2023.
- Full Year 2024 Revenue: $1,316.4 million compared to $1,459.9 million in 2023.
- Q4 2024 Gross Profit: $108.2 million compared to $102.7 million in Q4 2023.
- Q4 2024 Gross Margin: 26.2% compared to 24.6% in Q4 2023.
- Q4 2024 Net Income: $1.3 million or $0.01 per diluted share compared to $6.2 million or $0.06 per diluted share in Q4 2023.
- Q4 2024 Adjusted Net Income: $24.8 million or $0.23 per diluted share compared to $23.2 million or $0.22 per share in Q4 2023.
- Q4 2024 Adjusted EBITDA: $33.1 million compared to $33.7 million for Q4 2023.
- Full Year 2024 Adjusted EBITDA: $54.7 million compared to $95.1 million in 2023.
- Q4 2024 SG&A Expenses: $85.3 million compared to $73.8 million in Q4 2023.
- Q4 2024 R&D Expenses: $17 million compared to $16.7 million in Q4 2023.
- Cash Balance at End of Q4 2024: $109.6 million.
- Debt at End of Q4 2024: $174 million, down $25 million year over year.
- 2025 Revenue Guidance: $1.4 billion to $1.6 billion.
- 2025 Adjusted Operating Income Guidance: $67 million to $87 million.
- 2025 Adjusted EBITDA Guidance: $80 million to $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Corsair Gaming Inc (CRSR, Financial) reported strong Q4 revenue of $414 million and adjusted EBITDA of $33 million, indicating robust financial performance.
- The integration of the Fanatec sim racing company is progressing well, expected to drive positive revenue and EBITDA growth.
- The gaming and creative business grew by 20% year-on-year, with the Fanatec acquisition accelerating growth in Q4.
- The Elgato product line, particularly the Stream Deck, is performing exceptionally well, creating a new category in the market.
- Corsair's partnerships with major brands like Activision and Apple have increased brand awareness and sales volumes.
Negative Points
- Full-year 2024 net revenue decreased to $1,316.4 million from $1,459.9 million in 2023, indicating a decline in overall sales.
- The gaming components and systems segment saw a decrease in revenue, contributing $244.1 million in Q4 2024 compared to $280.5 million in Q4 2023.
- Fourth-quarter GAAP operating income dropped to $5.9 million from $12.1 million in Q4 2023, reflecting reduced profitability.
- Net income attributable to common shareholders was only $1.3 million in Q4 2024, a significant drop from $6.2 million in Q4 2023.
- The company faces challenges from tariffs, although mitigation strategies are in place, which could impact future costs and pricing.
